The election of a Coalition government and record low interest rates have led to a three year high in consumer confidence.
The Westpac Melbourne Institute Index of Consumer Sentiment has attributed the two factors for a 4.7 per cent increase in September to 110.6.
Westpac chief economist Bill Evans said this is the highest point since December 2010.
"Of course the important new factor this month is the recent Australian election," he said.
While the survey was conducted from September 2 to 8, meaning only the last day covered the actual result, Evans said media coverage pointing to a coalition victory helped fuel optimism.
"I think it is reasonable to conclude that the election result played an important if not leading role in this strong boost to Consumer Sentiment.
"The result is comparable with the boost to the Index in March 1996 when the Coalition was returned after 13 years in opposition."
Evans said record low interest rates also played a role.
"If sustained, it indicates that the Reserve Bank’s series of rate cuts which began in November 2011 are finally gaining strong traction with households.
"The Index has now increased by a respectable 13.8 per cent since the Bank began cutting rates and it is now 9.9 per cent above its average over the period since that first rate cut."